REG - Gresham House Energy - Long-term floor agreements on 737MW of projects

Gresham House Energy Storage FundAnnouncement

Tue 07:00

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RNS Number : 8914S  Gresham House Energy Storage Fund  29 July 2025

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET
ABUSE REGULATION (EU 596/2014) WHICH IS PART OF UK LAW BY VIRTUE OF THE
EUROPEAN UNION (WITHDRAWAL) ACT 2018.

 

 

29 July 2025

Gresham House Energy Storage Fund plc

("GRID" or the "Company")

 

Long-term floor agreements on 737MW of projects

 

Gresham House Energy Storage Fund plc (LSE: GRID), the UK's largest fund
investing in utility-scale battery energy storage systems (BESS), is pleased
to announce that long-term floor-pricing agreements ("Floor Agreements") have
been executed with a third counterparty, EDF Energy Customers Limited ("EDF").

 

The floor agreements with EDF are all at the same floor level in £/MW terms
and for more than 10 years. These will cover 100MW of currently operational
projects and a further 637MW of exclusive pipeline projects.

 

Once all the Floor Agreements are in force for the 100MW of currently
operational projects and the two-year tolling agreements with Octopus Energy
over 568MW of capacity have expired, 889MW (83%) of GRID's 1072MW 1  (#_ftn1)
operational portfolio will benefit from minimum annual contracted floor
revenues of £40mn, while still providing exposure to the upside merchant
trading opportunity above the contracted floors.

 

The operational portfolio's Capacity Market contracted revenues are not
included in the figure above and are expected to represent an additional
c.£11mn of contracted revenues in 2026.

 

The refinancing expected to be unlocked by the Floor and Tolling Agreements
relating to the operational portfolio is key to progressing the growth laid
out in our Three-year Plan, which also includes the planned augmentations and
the acquisition and construction of our exclusive pipeline - once SPV-level
project financing, which is separate to the operational facility refinancing,
and construction contracts have been put in place. This is expected to
conclude over the coming months.

 

 

 

John Leggate CBE, Chair of Gresham House Energy Storage Fund plc, commented:

 

"The Floor Agreements announced today with EDF, the UK's largest battery
optimiser, mark the completion of another key milestone.

 

Being able to demonstrate to lenders that GRID has de-risked revenues is key
to unlocking more favourable, longer-term financing terms with less onerous
covenants.

 

We look forward to concluding our refinancing shortly to unlock the next phase
of our Three-year Plan and implementing a revised Dividend Policy."

 

 

 

Ben Guest, Fund Manager of Gresham House Energy Storage Fund plc &
Managing Director of Gresham House Energy Transition, said:

 

"The Floor Agreements signed over the last month, including those announced
today, significantly improve the risk profile of the Company and fundamentally
reposition GRID as a business with significant minimum contracted revenue
while retaining merchant upside.

 

As well as having secured additional Floor Agreements on the currently
operational portfolio, we have ensured that the next 637MW of exclusive
pipeline projects also benefit from similar terms for their Floor Agreements
which will enable GRID to secure improved project financing terms on these new
construction projects, once acquired.

 

"We are pleased to be able to demonstrate further execution against our
publicly stated targets and strategy."

 

ENDS

 

 

For further information, please contact:

 

 Gresham House Energy Transition        +44 (0) 20 3837 6270

 Ben Guest

 James Bustin

 Harry Hutchinson

 Jefferies International Limited        +44 (0) 20 7029 8000

 Stuart Klein

 Gaudi Le Roux
 Harry Randall

 Peel Hunt                              +44 (0) 20 7418 8900

 Luke Simpson

 Huw Jeremy

 KL Communications                      gh@kl-communications.com (mailto:gh@kl-communications.com)

 Charles Gorman                         +44 (0) 20 3882 6644

 Charlotte Francis
 JTC (UK) Limited as Company Secretary  GHEnergyStorageCoSec@jtcgroup.com (mailto:GHEnergyStorageCoSec@jtcgroup.com)

 Christopher Gibbons                    +44 (0) 20 7409 0181

 

About the Company and the Manager

Gresham House Energy Storage Fund plc seeks to provide investors with an
attractive and sustainable dividend over the long term by investing in a
diversified portfolio of utility-scale battery energy storage systems (known
as BESS) located in Great Britain and internationally. In addition, the
Company seeks to provide investors with the prospect of capital growth through
the re-investment of net cash generated in excess of the target dividend in
accordance with the Company's investment policy.

 

The Company targets an unlevered Net Asset Value total return of 8% per annum
and a levered Net Asset Value total return of 15% per annum, in each case
calculated net of the Company's costs and expenses.

 

Gresham House Asset Management Ltd is the FCA authorised operating business of
Gresham House Ltd, a specialist alternative asset manager. Gresham House is
committed to operating responsibly and sustainably, taking the long view in
delivering sustainable investment solutions.

 

www.greshamhouse.com (http://www.greshamhouse.com)

LEI number: 213800MSJXKH25C23D82

 

 

Definition of utility-scale battery energy storage systems (BESS)

Utility-scale battery energy storage systems (BESS) are the enabling
infrastructure that will support the continued growth of renewable energy
sources such as wind and solar, essential to the UK's stated target to reduce
carbon emissions. They store excess energy generated by renewable energy
sources and then release that stored energy back into the grid during peak
hours when there is increased demand.

 

 

 

DISCLAIMERS

This announcement has been prepared for information purposes only. This
announcement does not constitute a prospectus relating to the Company and does
not constitute, or form part of, any offer or invitation to sell or issue, or
any solicitation of any offer to subscribe for, any shares in the Company in
any jurisdiction nor shall it, or any part of it, or the fact of its
distribution, form the basis of, or be relied on in connection with or act as
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basis of its own investigation and evaluation of the Company. Any such
determination should involve, among other things, an assessment of the legal,
tax, accounting, regulatory, financial, credit and other related aspects of
the securities.

This announcement may not be used in making any investment decision in
isolation. This announcement on its own does not contain sufficient
information to support an investment decision and investors should ensure that
they obtain all available relevant information before making any investment.
This announcement does not constitute or form part of and may not be construed
as an offer to sell, or an invitation to purchase or otherwise acquire,
investments of any description, nor as a recommendation regarding the possible
offering or the provision of investment advice by any party. No information in
this announcement should be construed as providing financial, investment or
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opportunity. No reliance may be placed for any purposes whatsoever on this
announcement or its completeness.

The information and opinions contained in this announcement are provided as at
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representation or warranty, express or implied, is or will be made in relation
to the accuracy or completeness of the information contained herein and no
responsibility, obligation or liability or duty (whether direct or indirect,
in contract, tort or otherwise) is or will be accepted by the Company, the
Manager, Jefferies, Peel Hunt or any of their affiliates or by any of their
respective officers, employees or agents to update or revise publicly any of
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whatsoever on the information or opinions contained in this announcement or on
its completeness, accuracy or fairness. The document has not been approved by
any competent regulatory or supervisory authority.

Any investment in Company is speculative, involves a high degree of risk, and
could result in the loss of all or substantially all of their investment.
Results can be positively or negatively affected by market conditions beyond
the control of the Company or any other person. Any data on past performance
contained herein is no indication as to future performance and there can be no
assurance that any targeted or projected returns will be achieved or that the
Company will be able to implement its investment strategy or achieve its
investment objectives. Any target returns published by the Company are targets
only. There is no guarantee that any such returns can be achieved or can be
continued if achieved, nor that the Company will make any distributions
whatsoever. There may be other additional risks, uncertainties and factors
that could cause the returns generated by the Company to be materially lower
than the target returns of the Company.

The information in this announcement may include forward-looking statements,
which are based on the current expectations, intentions and projections about
future events and trends or other matters that are not historical facts and in
certain cases can be identified by the use of terms such as "may", "will",
"should", "expect", "anticipate", "project", "estimate", "intend", "continue",
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assumptions, the events in the forward-looking statements may not occur and
actual results may differ materially from those expressed or implied by such
forward looking statements. Given these risks and uncertainties, prospective
investors are cautioned not to place undue reliance on forward-looking
statements.

Jefferies International Limited and Peel Hunt LLP, which are authorised and
regulated by the Financial Conduct Authority in the United Kingdom, are acting
only for the Company in connection with the matters described in this
announcement and are not acting for or advising any other person, or treating
any other person as their client, in relation thereto and will not be
responsible for providing the regulatory protection afforded to clients of
Jefferies or Peel Hunt (as applicable), or advice to any other person in
relation to the matters contained herein. Neither Jefferies, Peel Hunt, nor
any of their directors, officers, employees, advisers or agents accept any
responsibility or liability whatsoever for this announcement, its contents or
otherwise in connection with it or any other information relating to the
Company, whether written, oral or in a visual or electronic format. Each of
the Company, the Manager, Jefferies, Peel Hunt and their affiliates and their
respective officers, employees and agents expressly disclaim any and all
liability which may be based on this announcement and any errors therein or
omissions therefrom.

No representation or warranty is given to the achievement or reasonableness of
future projections, management targets, estimates, prospects or returns, if
any. Any views contained herein are based on financial, economic, market and
other conditions prevailing as at the date of this announcement. The
information contained in this announcement will not be updated.

 

 

 

 1  Reflecting the current portfolio once fully built, including West Bradford
which is expected to energise shortly.

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